Israel s role in turning oil into salt Gal

Israel’s role in turning oil into salt Gal Luft, Institute for the Analysis of Global Security

What’s wrong with this picture? 1980 2010 World population 4. 5 billion 6. 8 billion Number of automobiles 400 million 900 million World GDP 11 trillion 60 trillion Global oil demand 60 mbd 84 mbd 26. 8 mbd OPEC production o OPEC holds 78 pct of world reserves yet it produces less than one third of global demand its production hasn’t grown in 30 years.

What is Methanol? Also known as Methyl Alcohol, Wood Alcohol, CH 30 H A high octane alcohol fuel Made from coal, natural gas, biomass, CO 2 Formed by catalytically combining CO with hydrogen in a 1: 2 ratio under high temperature and pressure • Can run in flexible fuel vehicles • Current spot price $1. 10 • •

Methanol in China • China’s alternative fuel of choice: 14 provinces have standardized methanol. • Production capacity 37 million tons (almost half of the world’s production) • Consumption of methanol grows at an annual average growth rate of 16%. • China has over 200 methanol plants

CO 2 to methanol

Atlas Methanol Production Plant, Point Lisas, Trinidad and Tobago One of the world’s largest methanol plants Capacity: 1. 7 mt/y Estimated cost: $500 -$800 million

Israel’s experience with Methanol • A 1987 experiment by the Technion and Dor Chemicals demonstrated the possibility of adding 3 pct methanol to the gasoline that powers the existing vehicle fleet in Israel. • Throughout a period of 10 months more than 14, 000 vehicles were fueled with a blend of 3 pct methanol and 97 pct gasoline. • The conclusions of the experiment show that there were no technical hurdles to the deployment of low methanol blends in Israel.